World Poker Tour - WPTE

[Stock Whiz]

I posted a reply to a question in the stock market forum on WPTE. Please check it out. What are your thoughts on WPTE? I am thinking about investing in WPTE and wanted to get some more input beforehand. Thanks!

[That guy]

it is impossible to value this company using any kind of financial logic... that is not to say you can't make money trading the stock but I would stay away. insider shares are coming off lock-up and the stock is now being valued at $340 million dollars for expected revenues under $30 million this year.

I don't doubt that they can be a profitable company but I would use a tight stop loss if I were you.

If you really think the hype is going to go the way of Taser and Sirius, buy some but do not hold on if it starts dropping.

[Niediam]

I think you have two things going against you...

1) It's overvalued.

2) It has recently been going up.

[CptMisery]

One thing to consider though is the relationship with Wagerworks and their plan to have a WPT branded online poker site up and available by the end of the second quarter. Recent estimates have put Party Poker's annual revenues at $350 million.

They will use the television show to advertise the online poker site. More than likely it will be only on the international broadcasts (over 60 countries and counting). Domestically we probably won't see too many ads for it since they said they will not be accepting bets from the US.

Depending on what percentage they receive of the online revenues this might still be an attractive holding.

[TransientR]

If they really intend to shut out players from the U.S., I would be cautious. In addition, there are so many sites out there, it is harder for any new poker site, even one as well branded as WPT.

Frank

[Shoe]

I think it is a good buy for the time being, I agree that it is overvalued, but that won't stop the general public from riding the poker wave and driving the price up. The secret will be knowing when to sell.

We should be able to figure out when to sell before the general public, either when the poker buzz starts to die down, or if their WPT branded online poker site starts to fail (we should be able to determine if that site is succeeding or not before any press releases on it).

EDIT: Actually, when was the IPO? I thought it just came out, but it appears to have been on the market for atleast 6 months. In that case, I would not say it is such a great buy right now as it has already almost tripled in value. The secret will be figuring out where it is going to peak, this stock is a bubble that is going to burst eventually.

[Wetdog]

The IPO was on 8/4/04 at $8.00.

[Stock Whiz]

Up another 10% today on heavy volume. This could be a monster in the making especially if their gambling website is a hit.